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U.S. Job Market Remains Stable, Fed May Delay Rate Cuts Until September

U.S. Job Market Remains Stable, Fed May Delay Rate Cuts Until September

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2025/07/03 12:55

According to a report by Jinse Finance, the U.S. job market remained robust in June, with nonfarm payrolls increasing by 147,000, surpassing May’s revised figure of 144,000. The unemployment rate unexpectedly fell to 4.1%, while economists had previously forecast a slight rise to 4.3%. The report indicates that the labor market remains stable, which could prompt the Federal Reserve to delay resuming interest rate cuts until September. Although job growth exceeded expectations, the pace is slowing, mainly reflecting weaker hiring activity. Layoffs remain relatively low, as employers have generally been hoarding workers during and after the COVID-19 pandemic due to difficulties in finding labor. Several indicators, including initial jobless claims and continuing unemployment claims, show that after a period of strong performance that shielded the economy from recession, the labor market is now showing signs of fatigue. At that time, the Federal Reserve had aggressively tightened monetary policy to combat high inflation.

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